PRD Broome Market Update 1st Half of 2020
In the 2nd half of 2019 Broome recorded a median house price of $460,500 and median unit price of $310,000. This represents annual (2nd half 2018 – 2nd half 2019) median price softening of -0.4% for houses and growth of 4.6% for units. Between 2nd half 2018 – 2nd half 2019 house sales remained steady (88 sales), whilst unit sales increased by 25.0% (20 sales). Broome housing market has been relatively steady, with properties that offer value for money preferred. This is similar for units, except for holiday/resort units.
Average vendor discounting tightened between 2nd half 2018 – 2nd half 2019, to -7.7% for houses and to -7.5% for units. Market conditions in Broome still favour buyers, as sellers are willing to negotiate below their initial listing price. Buyers are encouraged to act now while such discounting is available.
Over the past 12 months house rental yields in Broome significantly increased, to reach 6.7% in December 2019. In combination with positive median rental price growth of 18.2% in the 12 months to Q4 2019, the house rental market is in a very healthy position. Dwindling available of house rental stock on the market (down -23.4% over the same period) has subsequently increased returns, indicating now is an ideal time for investors to enter the market.
4+ bedroom houses provided investors with +7.7% rental growth annually, achieving a median rent of $700 per week.Broome recorded a vacancy rate of 2.0% in December 2019, which represents a declining trend over the past 12 months. Vacancy rate in Broome is below Perth Metro’s 2.4% average, further confirming a healthier rental market in Broome. This is good news for investors, as there is a higher chance of quick occupancy for rental properties in Broome.